Finance minister suggests balanced budget possible for 2016

The Czech Republic could end this year with a balanced state budget, according to finance minister Andrej Babiš. Much depends on how many ministries will spend cash earmarked for them in the remaining months, he added. The state budget recorded a surplus 80 billion crowns at the end of August. A spending spree by ministries at the end of the year is a normal occurrence. The planned budget deficit for this year is 70 billion crowns, though it pretty clear now that figure is exaggerated. A shortfall in spending of around 30 billion crowns in infrastructure, especially transport investments, is one reason for the prospect of a balanced budget. Another is the low level of unemployment, now at its lowest level since August 2008.

Author: Chris Johnstone